Ask the Experts Broadband Applications Trends and Evolution

About Us • Sandy – 18+ years with AT&T; multimedia strategy director • Dave – Founder and R&D director, Prodigy Services Company • Together as System Dynamics Inc. – Specialists in residential broadband – Research and write Report on the Broadband Home • Free monthly Internet newsletter: www. bbhreport. com – Operate Broadband. Home. Central. com as industry resource – Organized and ran five BBH conferences 2000 -2001 – Consult for companies affected by residential broadband • Projects have included strategy, business economics, competitive analysis • www. Broadband. Gurus. com Copyright © 2002 Slide 2

Our View of the Consumer Market • Broadband access is the foundation for much of what’s changing in home technologies • Broadband access and PC networking are growing • Everything is going digital • The consumer electronics industry has a huge investment in driving sales of networked appliances • The worlds of the PC, home entertainment and telephones are starting to overlap and merge • People are spending their time and money on buying and using “this stuff” because it’s addicting • You ain’t seen nothin’ yet… Copyright © 2002 Slide 3

“Broadband Home” • Broadband access and in-home distribution network – Any kind of access – Any kind of network • Multiple broadband devices – PCs and emerging devices • High speed – Megabits: Millions of bits per second – To the home, in the home and from the home • “Always on” connection – Continuous connection – From the home to the outside world – To the home from the outside - can “see” the home from the outside • “Home” and “Office” set expectations – Create desire for capabilities “everywhere” Copyright © 2002 Slide 4

The Emerging Broadband Home ISP Services Broadband Access Home Gateway Cable Modem DSL Wireless

The Promise of Broadband Digital radio and TV everywhere in the home Big jukeboxes of music, movies, TV and games Personal voice and video conferencing Share photos and videos with friends and family Work from home as easily as in the office Control VCRs, AC, lights from anywhere Untethered access Copyright © 2002 Slide 6

Media Moms and Digital Dads – Our Story Foundation Connected Devices • Cable modem • Multiple PCs – server, service desktops, notebooks • Structured wiring • Nikon digital camera • Home gateway • Sony digital camcorder • Ethernet switches • Replay. TV & Ti. Vo DVRs • Wi-Fi • Audio. Tron networked digital audio • Home. Plug • Creative Nomad MP 3 player Copyright © 2002 Media Applications • Audio. Station • Listen. com • Shutterfly • Gracenote CDDB • Photo. Suite • Video. Wave • …and lots more Slide 7

See this movie on the Web! Our Broadband Home Movie Our Broadband Home An 8 -minute movie showing how we use broadband, networking and digital consumer electronics technologies in our own home. Broadband version for cable modem and DSL: www. bbhcentral. com/presentations/BTC 2002 BB. rm Narrowband version for dialup: www. bbhcentral. com/presentations/BTC 2002 NB. rm Copyright © 2002 Slide 8

Update on Our Broadband Home – April 2003 • Audio. Tron moved to main audio system in dining room – Connected to network with Home. Plug over powerline • Ti. Vo PVR added in bedroom – will soon upgrade to broadband use – Ethernet connection already behind TV • Testing Wi-Fi access points and LAN cards – 802. 11 b (11 Mbps), 11 a (54 Mbps), 11 g (54 Mbps) – Using Air. Magnet: great tool for surveying 802. 11 networks and diagnosing problems • Testing three kinds of SIP Vo. IP phones – Stand-alone digital phone – Ethernet interface – Multimedia terminal adapter (MTA) with analog phones – PC-based phone with external handset – Windows Messenger • About to test Pris. MIQ Media. Player – Networked digital video, audio, and photos Copyright © 2002 Slide 9

Top Trends • Broadband Penetration Keeps Growing • PC Networking Increasing • Everything is going DIGITAL • Networked Consumer Electronics – TVs, stereos, digital cameras, digital video recorders, game consoles, PDAs, etc. being built to connect and communicate • “Home gateways” emerging – From simple (cable/DSL router) on up (advanced set-top boxes, Microsoft “Media Center Edition”, Pioneer “Digital Library”) • Wireless is BIG – Wi-Fi in home, office, airports, hotels – “Broadband anywhere” for voice—not yet for broadband data • Increasing Consumer Expectations – Faster, better, cheaper – Cuts across gender, age and class Copyright © 2002 Slide 10

Everything Is Going Digital 1992 2002 2012 Audio Players Video Players Still Cameras Camcorders

…Now, Your Thoughts and Questions • About various types of broadband access • … compelling consumer applications • In the home, away from home • … different options for home networking • … consumer willingness to pay • … whether hot spots can be a stand-alone business • … how fast “broadband anywhere” will become real • … and anything else about consumer broadband • We don’t have all the answers—but let’s talk! Copyright © 2002 Slide 12

Thank You! For More Information: www. broadbandhomecentral. com dave @ bb-home. com sandy @ bb-home. com www. broadbandgurus. com 18 Beaver Ridge Road, Morris Plains, NJ 07950 -1901 (973) 644 -4739 Fax (973) 538 -6003